Service Strategy - Economic Climate

The economic climate has brought about drastic changes to peoples perception on budgets and appropriate spending. Using ITIL Service Strategy and Continual Service Improvement we take a look under the bonnet to determine which of our services is performing well and providing that return on investment, and use vision to improve those which are not performing well.

With less business readily available, organisations are looking to do more with less. Budgets are being cut but operational health still needs to survive. When these come together, it's all about maturity and effective use of resources and infrastructure.

During a depression, like the ones seen recently, productivity tends to fall in the early stages, then rises again as weaker firms close. Organisations adopt a minimalism approach, aiming to achieve the same value with the same, or a reduction in resources.

In some cases, businesses kick start the process by re-evaluating themselves. Necessary purchases are documented, including tangible assets such as equipment and inventory. Services are also reviewed including remodelling and insurance. Working capital, sources and collateral are also included. Strategic Assessment is at the heart of this.

Assessment

Using Strategic Assessment, a provider can take a look at itself and analyse what it does already. Distinction and profitability are two important factors between established service providers and those which are struggling in the market. Providers must ask the right questions:

Which of our services is the most distinctive?

Which of our services is the most profitable?

What makes us special to our business or customers?

Developing the strategies

Service providers need to be able to think and act in a strategic manner for long term success. ITIL Service Strategy provides guidance on how to transform Service Management into a strategic asset. Asking to right questions is once again, vital: